National Tea announces details of placement share sales
National Tea got consent from the securities regulator to raise paid-up capital of Tk279.70 crore by issuing 2.34 crore shares at Tk119.53 each including a premium of Tk109.53 per share.
Among the investors, the government, Investment Corporation of Bangladesh and Sadharan Bima Corporation will get 1.24 crore shares at a ratio average of 4.43 shares against existing one shares.
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Sponsors and directors will get 13.80 lakh shares at a ratio average of 3.21 shares for one existing share, while general shareholders will get 95.39 lakh shares at a ratio average of 2.85 shares against one share.
The company set the record date on 15 May for the entitlement of placement shares.
It also announced the subscription date for the share allocation to the investors. The subscription date is from 10 July to 10 September. Investors should apply for the placement of shares within the scheduled time.
The company wants to raise funds for working capital, field and factory development, and repayment of bank loans.
In September last year, the company announced that it wants to issue new shares at Tk118 each – Tk10 face value and Tk108 premium – for raising paid-up capital, and make its general shareholders eligible to receive three newly issued shares against each that they currently hold.
Currently, the government, the Investment Corporation of Bangladesh, and the Sadharan Bima Corporation hold 42.72% shares of the company, which will be increased to 51% through private placements. The remaining newly-issued shares will be allotted to the existing directors and general shareholders. Three directors of National Tea hold 10% of its shares.
At present, the company's paid-up capital is Tk6.6 crore, and the authorised capital is Tk25 crore. It wants to increase its paid-up capital in order to meet the regulatory requirements.
Incorporated in 1978 and listed on the capital market in 1979, the National Tea Company cultivates, manufactures, and sells tea and rubber in the local market.
The company's annual average production is about 5.2 million kg of tea, the major portion of which is sold through the Chattogram auction market.
